With Gov. Ned Lamont and Democratic legislators at odds over how to balance Connecticut’s next budget, the door is open for minority Republicans — particularly in the House — to shape the state’s fiscal future.
House Minority Leader Vincent J. Candelora said his caucus hasn’t decided whether to side with Gov. Ned Lamont or Democratic legislative leaders. But he also said GOP lawmakers are ready to work with whoever will deliver relief and curb wasteful spending.
“Republicans have a [budget] framework,” Candelora said, adding his caucus has proposed more aid for cities and towns and ongoing income tax cuts. “To the extent we can move the conversation in that direction, you would see Republican support.”
The House GOP leader also noted many municipalities already have adopted local budgets and set their property tax rates for the fiscal year that begins July 1. Because of that, Republicans would insist any communities get the option to reopen their respective budgets and use any last-minute increases in state assistance to reduce local taxes.
“I think there has to be a broad-based recognition that all of our communities are struggling,” he said. “I would like to see everybody get something.”
Lamont and his fellow Democrats hit a road bump over the weekend as they were negotiating a compromise budget before the regular 2026 General Assembly session closes May 6.
The governor and Democratic legislative leaders agree they want to boost municipal aid. But lawmakers say it can’t be done without exceeding the cap that keeps budget growth in line with household income, and without diverting modest funds from a special savings program Connecticut has used to retire $10 billion of its pension debt since 2020.
The legislature can spend more than budget caps allow provided the governor declares a fiscal emergency in writing and 60% of both the House and Senate agree.
Lamont, a fiscal moderate, generally has been reluctant to set the caps aside and prefers legislators pay for extra municipal aid by cutting spending elsewhere in the budget.
Democratic legislators have proposed giving communities $170 million extra next fiscal year for local schools and then continuing those added funds in future budgets. They’ve also proposed giving towns a one-time $100 million boost after July 1 to support non-education programs. That’s potentially $270 million in funding that would not have to come from local property taxpayers, leaders said Monday, adding they anticipate Connecticut could do that and still reduce its debt significantly.
“You’ll also see, you know, us still wanting to put more money into pensions and things like that, which the governor has been adamant about,” House Speaker Matt Ritter, D-Hartford, said Monday. “That’s not going to go away.”
Ritter also said his caucus strongly supports giving all cities and towns the option to reopen their budgets to use new state aid to reduce local taxes.
The speaker added that while Democrats continue to negotiate with the governor, “I will continue to talk with Representative Candelora.”
Democratic leaders haven’t made any public statements about voting on a budget Lamont does not support, and they remain in negotiations with the Executive Branch.
On paper, though, the party controls the two-thirds’ margins needed in both chambers to override any veto. Specifically, Democrats hold 25 out of 36 seats in the Senate and 102 out of 151 in the House.
But with moderates holding many seats in the House, securing the 101 votes needed there to override a potential Lamont veto of the budget would be much easier with Republican support.
The governor said last week he expected to reach a compromise with lawmakers but is committed to crafting a spending plan that is sustainable and leaves Connecticut well-positioned to handle anticipated future cuts in federal assistance and any economic downturn.
Candelora, who said he also will discuss budget options with his caucus later Monday or Tuesday, said Republicans prefer not to exceed the cap but also recognize growing pressures not only on local governments but also on Connecticut households. That means the party also would like to see some major tax cuts in the next budget.
Earlier this month, the House GOP proposed ongoing income tax cuts worth nearly $370 million per year. Most relief was aimed at the middle class by expanding an existing credit that offsets a portion of municipal property tax bills from $300 to $650.
Republicans also want to create a new exemption for tips earnings and expanding the state’s partial tax exemption on Social Security income to a full exclusion.
But any major proposals for direct tax relief have stalled in talks between the governor and Democratic leaders.
Lamont had proposed a one-time $500 million tax rebate program that would deliver $200 to most taxpayers in late October. And Democratic legislators earlier this session proposed a wide array of tax cuts, including new income tax credits for families with children and for renters.
But they have shelved the rebate and most major tax-cutting proposals, sources close to budget negotiations said, to preserve dollars for extra local aid.
House Republicans also have been pushing Democrats in the legislature’s majority to seek greater economies in state spending. The GOP says Connecticut could save $150 million by delaying allowable new hires throughout the next fiscal year.
The state currently has about 2,600 authorized but unfilled positions, according to Rep. Tammy Nuccio of Tolland, the ranking House Republican on the Appropriations Committee.
